This paper considers a simple quantitative model of output, interest rate and inflation determination in the United … disturbances, can account for our data nearly as well as an unrestricted VAR. The monetary policy rule that most reduces inflation … high average inflation rate. But even in the case of a constrained-optimal policy, that takes into account some of the …

This paper extends and evaluates previous work on the positive theory of inflation. We examine the behavior of … governments concerned solely with minimizing the deadweight loss from raising revenue through inflation and tax finance. We show … positive contemporaneous association between inflation and the level of tax burdens. We examine the empirical validity of this …